The fees paid by the State to GPs and pharmacists for services such as administering the flu vaccine are to be reduced by around 7.5%, the Department of Health has confirmed.

The cuts, which will save the State an estimated €40 million between now and the end of 2013, are effective immediately.

GPs will be paid less for treating older people with medical cards and for services such as administering flu shots, while pharmacists will no longer be paid the retail mark-up for drugs dispensed under the Long-Term Illness Scheme and Drug Payments Scheme.

Both GPs and pharmacists have previously expressed serious concern about reductions in their income as a result of cuts already introduced.